The Autumn Budget has dropped some shocking inheritance tax changes. Are your savings safe from the taxman?
The Autumn Budget of 2024 has sent shockwaves through the financial community, particularly concerning the changes to inheritance tax that are set to make quite the splash. Chancellor Rachel Reeves has announced that UK stocks listed on the Alternative Investment Market (AIM) will now face a hefty 20% inheritance tax, alongside a series of other proposed measures. This significant tax burden has raised concerns for investors as speculation grows about a potential inheritance tax raid, with many now reconsidering their financial strategies and investments.
Not stopping there, Chancellor Reeves has further stirred the pot by announcing that inherited pensions will also fall under the scope of inheritance tax starting from April 2027. Financial experts predict this could have a profound effect on high net worth individuals and families planning their legacies. With the looming fear of taxation on previously sheltered pension pots, affluent estates are now more prone to surpass the calculated thresholds for taxation, meaning that more families could be caught off guard by their inheritance tax liabilities.
Moreover, the inheritance tax threshold freeze has been extended, now pushed back to 2030. This means that the first £325,000 of any estate can be passed on tax-free, but for many families, especially those with substantial pension savings, this may be a bittersweet blessing. The threshold for estates that include a residence passed to direct descendants has been touched up as well, allowing for a £500,000 exemption, but with the changes looming, many may find that their inheritance is suddenly less secure.
In this rapidly evolving financial landscape, investors have pulled a whopping £300 million from UK stocks amid these inheritance tax fears, particularly impacting small and mid-cap firms. The picture isn’t all bleak, though; Chancellor Reeves reassured that a 50% relief will apply to shares on the Alternative Investment Market, giving AIM investors a glimmer of hope amid the chaos. As families and individuals grasp the implications of these dramatic tax changes, it’s essential to evaluate financial strategies to navigate the rapidly shifting landscape ahead.
Did you know that inheritance tax only affects about 4% of estates in the UK? With these impending changes, that number could see a significant spike. Additionally, a staggering £22 billion is collected each year in inheritance tax, making it a crucial source of government revenue—so expect the taxman to come knocking more than ever!
UK stocks listed on the Alternative Investment Market (AIM) will have a 20% inheritance tax applied to them, as part of a range of inheritance tax measures ...
Pensions passed on will be subject to inheritance tax (IHT) from 2027, chancellor Rachel Reeves has confirmed in today's (30 October) Budget.
Chancellor Rachel Reeves has trimmed the tax relief available on AIM investments in a bid to raise more from inheritance tax. Most AIM stocks qualify for ...
Inheritance Tax is a tax paid on the estate (property, money and possessions) of someone who has passed away.
With speculation mounting over an inheritance tax raid in the Budget, investors are withdrawing funds from UK stocks, particularly small and mid-cap firms.
Chancellor Rachel Reeves has moved inherited pensions into the scope of inheritance tax (IHT). The announcement was made in the Autumn Budget today (30 ...
Labour has announced that it will freeze income tax thresholds until 2028, but bring inherited pensions into inheritance tax from April 2027.
Reeves said a 50% relief would apply in all circumstances on inheritance tax for shares on the alternative investment market, and other similar markets, setting ...
The freeze was initially put in place until 2028 by the previous government but this has been extended in today's Budget. Reeves said she will maintain the ...
Chancellor Rachel Reeves has said the inheritance tax threshold freeze has been extended from 2028 to 2030.
Chancellor announces tighter inheritance tax rules although pensions escape worst of feared changes.
Adding unspent pension pots into inheritance tax calculations means thresholds will be breached by many more estates in future. The move is part of a £2billion ...
Inheritance tax implications for pension pots revealed in Autumn Budget. Understand the new rules and start reviewing your retirement plans today.
Changes to the UK's inheritance tax regime are likely to prompt a widespread re-evaluation of financial strategies by high net worth individuals, ...
That means the first £325,000 of any estate can be inherited tax free, rising to £500,000 if the estate includes a residence passed to direct ascendance and £1m ...
Changes announced to inheritance tax rules could see the end of small family farms, warns the NFU.
Government now says it doesn't want pensions to be used to pass on wealth.
Chancellor Rachel Reeves has slashed farming's favourable inheritance tax reliefs in this week's Budget, limiting 100% agricultural property relief and.
After much speculation and lobbying from the farming industry, Chancellor Rachel Reeves has confirmed changes to inheritance tax reliefs.
Changes announced to inheritance tax rules could see the end of small family farms, warns the NFU.
UK farms worth more than £1 million will no longer be exempt from paying inheritance tax, Rachel Reeves has announced in her autumn budget. For combined ...
Substantial changes to the UK's inheritance tax regime announced in Wednesday's Budget will have a big impact on business and farm owners, ...
Pensions and death benefits passed on will be subject to inheritance tax (IHT) from 2027, with both defined contribution and defined benefit schemes ...
Chancellor Rachel Reeves has slashed farming's favourable inheritance tax reliefs in this week's Budget, limiting 100% agricultural property relief and.
Industry counters that Budget cap will hammer agricultural businesses that are asset-rich but cash-poor.
Serious concerns have been voiced for the future of family farms after major changes to inheritance tax were announced by Chancellor Rachel Reeves.
Chancellor Rachel Reeves announced in her Autumn Budget that pensions will be considered when paying inheritance tax from 2027.
The government has announced that the inheritance tax (IHT) nil rate band will be fixed for a further two years, business property relief (BPR) and ...
Inheritance tax is imposed as a percentage of the value of a decedent's estate transferred to beneficiaries by will, heirs by intestacy and transferees by ...
Experts say big tax bills could result from Rachel Reeves' move in the Budget.
Since 2007, the Octopus Inheritance Tax Service has allowed investors to invest in the shares of companies which have positively contributed to the UK's.
Changes to Inheritance Tax (IHT) proposed during the Autumn Budget 2024 include significant changes to APR and BPR.